Posted on 05/16/2024 9:31:16 AM PDT by ChicagoConservative27
The Dow Jones Industrial Average eclipsed 40,000 points for the first time in its history Thursday as Wall Street cheered slowing inflation and potential for lower interest rates.
The iconic stock index was up roughly 111 points shortly before 11 a.m. Thursday, reaching about 40,020 points. The Dow was created in 1895 and includes the 30 most prominent U.S. companies as determined by S&P Dow Jones Indicies.
The Dow is up 6 percent since the start of 2024 as investors eagerly await Federal Reserve rate cuts, which could add more fuel to the stock market. While the Fed has held off on rate cuts so far thanks to a combination of strong job gains and rising inflation, new data from the Labor Department showed price gains slowing for the first time since last year.
The Dow, Nasdaq composite and S&P 500 index all closed at record highs Wednesday.
(Excerpt) Read more at thehill.com ...
Anticipating a Trump presidency.
A well known financial advisor depicted this as “irrational exuberance,” meaning it’s a market of hot air, unsupported by commensurate profitability.
The markets did this before the tech bubble burst in 2000.
Cantillon Effect
It's called bleeding off holdings to the retail investors gamblers.
The big fish are eating the little fish. Watch what the big fish are doing right now. They're selling like nobody's business.
The big fish are also doing stock buybacks to artificially push up individual stock prices.
Let's take a quick survey of how the global economy is doing:
China? Dumpster Russia? Dumpster Germany? Dumpster Japan? Dumpster US? Heading into the dumpster.
Don't be caught flat-footed.
All that made up, electronic money has to end up somewhere, usually in buying real estate and stocks.
There are few other places to park all of that liquidity that’s been pumped into the system. I’m afraid that Trump will be left holding the bag and, of course, being wrongly blamed for it all when it inevitably crashes down.
There’s no stopping us now!!!
š„š„š„š„
Funny money, printed up by the Fed to keep the party going. Gonna be even more fun when the debt reaches $50 Trillion and annual interest payments take up half of the federal budget. Not to mention unfunded Medicare and Social Security liabilities of $100-200 Trillion. Whee!!
Then there’s the hyperinflation, but enough misery for this post.
There are few other places to park all of that liquidity
For those who appreciate what is truly worth while, liquidity can be parked in barrels, preferably of oak (not pine—greek wine is awful), glass, or, in a pinch, aluminum.
Surely you recall Billy Beer.
And don’t forget precious metals, the most important of which is lead.
Yep
I don’t see the lower interest rates happening. Inflation is not cooling according to the latest figures I’ve seen. I see rates staying where there at (or maybe even ticking up very slightly).
Things are very, very wrong. Beware of strange data points like this especially when it doesn’t fit.
Plunge Protection Team working overtime.
50,000 Iām out. Call me if you need me. The extra 20%.
40,000 today has the same buying power as 21,900 in 2000. A dollar amount that is not adjusted for inflation is meaningless.
Don’t forget fake profits made from inflation. All just funny money. There is no “real” gain here, no increase in productivity, no increase in efficiency. You have to play the funny money game though to just stay even. There are no other good choices.
If you have some viable investment ideas, please, let us hear them.
It is a leading economic indicator.
It is indicating that the most anti-business administration in our nation’s history is on it’s way out.
Pres Trump’s odds are at the lowest odds to date-stock market hits record highs.
Well its probably only 20,000 when adjusted for inflation. But the higher goes then the father it can fall.
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